If the Canadian dollar were to move a lot higher, it could have a material impact on the Bank of Canada’s (BoC) outlook and monetary policy settings, BoC Governor Tiff Macklem said on Thursday, as reported by Reuters.
Additional takeaways
“Still quite comfortable with BoC’s projections.”
“Wouldn’t over-rotate on one month’s inflation data.”
“Large part of the Canadian housing boom is fundamentally driven, Canadians want more space.”
“Flexible inflation targeting is hard to beat.”
“Rise in commodity prices is good news for Canada.”
“If C$ continues to rise could be more of a headwind to export projections, we are looking at this.”
Market reaction
The USD/CAD pair edged modestly higher on these comments and was last seen gaining 0.18% on the day at 1.2153.
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